Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Canadian gold miner Infinito Gold (TSX.V:IG) says it will sue the Costa Rican government for $1 billion after a new mining law in 2011 rendered its open-pit mine illegal.
The company has invested $92 million in the Las Crucitas project which, according to the company, had a profit potential of $1 billion.
In 2008 Infinito obtained a mining concession for the 261-hectare project in the northern region of Crucitas. But after an outcry from some politicians and environmental groups, a court decided to cancel the permit. The project would have destroyed 190 hectares of forest.
According to AFP (in Spanish), the company made the law suit official on Friday through its Costa Rican subsidiary Industrias Infinito.
Infinito Gold, a Calgary-based firm, has decided to take the case to the International Centre for Settlement Dispute – a World Bank organization head-quartered in Washington, DC – because six months of negotiations have failed.
Costa Rica’s Environment Minister told AFP reporters that the ministry would soon release an official statement.
Earlier this year, the International Centre for Settlement Dispute dismissed Infinito’s $1 billion claim against another Latin American government. Venezuelan officials confiscated the company’s Las Cristinas mine in 2001, sparking a 10-year battle between the government and the Canadian company.
6 Comments
Walhei
Will they never learn? You can’t trust Socialist! Socialist destroy economies, then need to confiscate private wealth to continue to support high living government workers. Happening in America under Democrats and Obama. Taking over more and more of economy so they can give it to themselves and people who will not work.
apple
The mining industry and international industry representatives should develop a list of countries, states and communities that are against mining. This will allow companies and investors to steer clear of these areas and reduce the risk of wasting important exploration and development funding. This list will also serve investors of other industries when making investing decisions.
Don
Yes stay away from adder countries there is gold here in canada too
In time the can get it them self
Hope the not make it
Drop it and move on!
Lee-Anne Witherspoon Diepdael
Open pit mine in the Costa Rican rain forest?? That would be a travesty! Makes me embarrassed to be a Canadian!
Stan Squires
I am from vancouver,canada and i wanted to say that i hope Infinito Gold never gets a cent of their money back.This canadian mining company is reactionary,racist and got contempt for the working class.This mining company and all other canadian mining companys should be condemned for human rights abuses against miners in all parts of the world.The Costa Rican gov. should throw these reactionary canadian mining bastards out of Costa Rica.Labour and capital got nothing in common.To hell with Infinito Gold.
Adam
From a sheer natural justice point of view, I can see how even assholes might deserve their $92 million back after a broken promise…but holding them liable for all potential profits?! What rubbish. I mean I personally have been robbed of a *potential* 200 billion profit in being blocked in my plan to charge admission to London and run it as a theme park. I mean I was out with my mate who works near Westminster and I was drunk and he was drunk and he said he was pals with David C and I told him my plan and he said “WOOOOOOW” and I said “YEAH” and now David’s all like “NO BAD!” and I want my money.